FUJAIRAH DATA: Oil product stocks climb 5.6% on week on higher middle distillates

Oil product inventories at the UAE’s Port of Fujairah rose 5.6% in the week ended Oct. 14, the third consecutive weekly gain, according to Fujairah Oil Industry Zone data published Oct. 16.

The total stocks increased to 16.916 million barrels, the highest since Sept. 16, according to FOIZ data compiled by S&P Global Commodity Insights. Stockpiles have now decreased 2.4% since the end of 2023.

Heavy distillates used for power generation and as ship fuel climbed for the first time in five weeks, rising 17% to 8.387 million barrels, according to the data. Inventories of light distillates such as gasoline and naphtha fell 17% to 5.579 million barrels, a two-week low, while middle distillates such as jet fuel and diesel ballooned 38% to 2.950 million barrels, the highest in four weeks.

In the week started Oct. 7, fuel oil exports from Fujairah jumped almost five-fold, to 1.7 million barrels from 362,000 barrels a week earlier, according to S&P Global Commodities at Sea(opens in a new tab). Saudi Arabia accounted for the bulk of the latest week's fuel oil sales, at 921,000 barrels, with another 445,000 barrels destined for Iraq and 335,000 barrels for South Africa.

The rest of the refined product exports, such as gasoline and diesel, slumped over the same period to 2 million barrels from 4.45 million barrels.

Supplies of both high and low sulfur fuel oils for shipping are considered ample, traders said, just a week after heavy distillates inventories dropped to almost a three-year low.

For LSFO, the Platts-assessed Fujairah-delivered marine fuel 0.5% sulfur bunker premium over benchmark FOB Singapore marine fuel 0.5%S cargoes rose 8.2% in the week ended Oct. 11 to $11.16/t, Commodity Insights data showed. At the same time, for HSFO, the Platts-assessed Fujairah-delivered 380 CST bunker premium over the FO 380 CST 3.5% FOB Arab Gulf cargo fell 16% to $35.66/t. The drop in HSFO led some suppliers to stay out of the market, a bunker trader said.

September bunker sales showed LSFO volume up 1.9% from August and HSFO volume down 22% over the same period, port data showed Oct. 15. Fujairah is the world's third-largest bunkering hub after Singapore and Rotterdam.

So far since the end of 2023, stockpiles of light distillates have climbed 19%, heavy distillates have dropped 17% and middle distillates have risen 18%.